As the foreign financier one can get assess incentives in tax that will be helpful in the chose field of business (Kinda, 2010). Disadvantage of FDI in Developing Nation Negative effect on investment of country The guidelines representing foreign exchange rates plus direct investment could negatively affect financial spending of a nation. Investment might be not allowed in a number of foreign markets, which implies that it is difficult to lead an enticing opportunity (Kinda, 2010). The costs of things are quite high on exports good due to FDI. As a result, it is very important to arrange enough money in order to set up own procedure.
However, some countries benefit more from trade and as a result, this research is to study the impact globalization have on international trade in sub-Saharan African countries. The benefits and losses and the strategic measures they can put in place to benefit more from international trade to increase the wellbeing of their people. References Ajayi, I. (2003). GLOBALIZATION AND QUITY IN SUB-SAHARAN AFRICA.
The policies laid down are backed by the country's constitution. Good economic institutions- are those with policies/ rules that are enacted with the aim of reducing poverty and enhancing economic development. The growth process begins when reforms and policies that are made and agreed upon, and they open new opportunities for profitable investments, thus creating favorable conditions for investment and innovation.
Regional economic cooperation and integration do have important security dimensions and implications. This is because economic cooperation and integration may be driven by the desire to reduce the likelihood of political or military conflict between the states involved. SADC and COMESA were founded on this basis. The economic regionalism has also the self-protecting response with security overtones to economic globalization. By working together in regional groups, states can help to protect markets and industries in their region, increase their competitiveness in the global economy and strengthen their hand in global economic forms such as the World trade Organisation (WTO).
Joseph E. Stiglitz. The present set of rules that govern globalisation are not fair as they favour the powerful nations. Politics has shaped globalisation in a manner that is prejudicial to the poor countries in the world. The international economic organisations promote a neo-liberal agenda and policies which is supported by western governments and transnational corporations. These institutions are unaccountable for their action and undermine third world democracy.
IN case of Pakistan where markets and economy are developing so in this case Pakistan is much need of foreign investment. Because of foreign investment Pakistan increases economic growth, Developing and enhancing the managerial skill, employment level, and technology and increase standard of living. Pakistan that is developing country is need that foreign investor wealth come there country. Pakistan develops policies to attract the foreigner investor to increase the GDP, PCI etc. Many benefits of FDI is given below 1.
4.0 Implementation 4.1 Broader perspective Globalization is affected by various factors that drive towards its existence and formation in the society and a set of these macroeconomic factors. As per this analysis we can get an overview of the current economy of the country that helps the researcher to make relevant suggestions and recommendations that can benefit the economy as well as society to make them believe and trust that the globalization enhances their behaviour and life style. PEST Analysis: Source: Visual.ly website PEST Analysis of Saudi Arabia Political environment Giddens and Griffiths (2006, p. 59) states that mainly there are three reasons why politics has become one of the main drivers of globalization.
Therefore, the government have to undertake several strategic measures to enhance the nation’s capability, particularly in providing an ecosystem to support the development of the chain of refining, storage and trading. The total production from the oil and gas industry in Malaysia is very affecting to the national income to this country. This is because the oil and gas industry is the one of the prominent agricultural industries in Malaysia. Based on the planning in budget 2013 to transform oil and gas industry in Malaysia to a global integrated trading hub, it is important to identify factors that will affect the economic growth. The transformation from producer to
There are a number of theoretical studies that have examined FDI. According to economists, FDI is an essential component for the economic development of any country, specifically developing countries. The theories of FDI are as follows: 1. Production Cycle Theory of Vernon According to the theory of Venom, there are four stages of production cycle: innovation, growth, maturity and decline. According to Raymond Vernon, different companies come up with a new innovative product or service for local consumption and export the surplus in order to serve also the foreign markets.
Foreign investors on the other hand were innovative and detached from the government’s reluctance to engage in large capital projects that lead to dynamic growth. In addition, Hirschman (1958) claimed that foreign capital has the ability to maximize the potential of underutilized sectors of an economy. Hirschman (1958) however did not consider the fact that domestic investors are not generally hesitant to take on large projects, but lack the capital to do so which is a common problem in developing